rental tax

[Culchie]

You're right, I haven't made any references to roll over and annual allowances blah blah blah because

1) ...tax is boring, I can't be arsed talking about it any longer. Emma's question has been well and truly answered, she does have to pay tax to the UK Govt, and an even better answer bearing in mind all your input on allowances, roll overs etc... is to take Graham's advice and get an accountant.

2) It still means regardless of how many properties are bought and sold, you are eventually going to have to pay CGT.


Just one point, although it could be different in the UK, but normally these thing are the same....

You have to pay CGT tax on all property sales, regardless of how soon you sell etc... if the property is not your 'principal residence', minus your annual allowances.


If the UK has a CGT allowance of £10000 per annum it is very generous, here it is €1000.

[matt]

Culchie,

Sorry to bore you...but there are others who may be interested!

Do get a tax expert...lawyer or accountant.

The 2 point you make is simply incorrect. I think people should be aware of their rights. It is possible to avoid CGT quite legally. The idea is that the governent wishes to encourage people to invest in their businesses, without the fear of attracting CGT on any future gains they may make on that investment. Hence the roll over idea. If the property in question is the business assett, which it clearly is, any pecuniary gains made on it can be rolled over to the purchase of the next business asset.

Matt

[Culchie]

and, still on point 2....... what is going to happen when you eventually liquidise this assets ? ..... you are going to pay CGT

[matt]

Culchie,

I concede that in theory you are correct. In pracatice, the gain will be transferred down the line of property(business asset) transactions until death, at which time the gain will form part of the person's estate. The beneficiaries will then foot the bill!!

I personally feel that my beneficiaries will, over the years, gain in many ways, including pecuniary (from the rent), culturally (holidays in Croatia) etc etc...enough atleast to assuage my guilt for leaving said liability as part of my estate!

I at any rate will not pay the tax, whilst the asset side of the estate will substantially outweight the debit.

Matt.

[Culchie]

and I take your point as well, then if you keep turnover property till you kick the bucket, then you ain't going to have to take out the cheque book and pay CGT.

I was answering Emmas original question, and I think my answer stands up.


BTW, I didn't say you were boring me, I said Tax is boring....which (unless you are an accountant) is for most people.

[emma]

Thanks everyone, for some sound advice. Sorry for such a taxing subject!

[trag]

Best thing to do is get a job offshore where your income is tax free - no obligations to anyone then....
it works for me!

trag ;D